PitchBook News - Crypto VCs line up for bitcoin boom

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The Weekend Pitch

December 1, 2024

The Daily Pitch is powered by PitchBook’s industry-defining research and best-in-class data

President-elect Donald Trump
(The Washington Post/Getty Images)

Since the outcome of the US presidential election became clear, bitcoin has smashed all-time highs—chasing $100,000 for the first time. The outlook for crypto venture capital investing, which often rides these bull markets, isn’t as clear-cut.

I'm Michael Bodley, and this is The Weekend Pitch. You can reach me at https://my.pitchbook.com/n/69855.4851448.2210733 or on X @michael_bodley.

Regulatory changes by President-elect Donald Trump’s second administration may not solve the industry’s long-running problems and regulation-by-enforcement gripes.

Crypto VC investment dropped 31.1% quarter-over-quarter to $1.7 billion in Q3, according to PitchBook data. The dip reversed the momentum for crypto startups earlier this year, which PitchBook analysts attributed, in part, to macroeconomic factors like the lingering effects of higher rates.

VCs are watching the performance of bitcoin and other cryptocurrencies closely. Traders have been whipping up a bullish frenzy on the sentiment that Trump will champion legislation to boost the industry.

The correlation between cryptocurrency market capitalizations and VC dealmaking has decoupled over time. Murky US rulemaking, as well as persistently elevated interest rates, have muddied that trendline.

But early expectations are that Trump-appointed financial regulators could set up a new system for incorporating crypto companies and launching associated consumer- and trader-facing products. That work is projected to take into account everything from federal tax reform on trading gains and losses to establishing a clearer path for crypto operators to register tradable tokens.

Trivia

(VeeStudio/Getty Images)

The Ontario Teachers' Pension Plan is in talks to exit its stake in several airports worldwide with several buyers buying the $4.4 billion portfolio. Three of the airports are located in Britain. Which British airport OTPP NOT have a stake in?

A) London City
B) Bristol Airport
C) Birmingham Airport
D) London Heathrow Airport

Find your answer at the bottom of The Weekend Pitch!

Stay tuned

Keep an eye out for these insights and research reports coming out this week:

Q3 2024 Global Private Market Fundraising Report
2024 Japan Private Capital Breakdown
Q3 2024 Insurtech Report
November 2024 Global Markets Snapshot
2024 DACH Private Capital Breakdown

Clean energy bets
powered up in Q3

(Monty Rakusen/Getty Images)

Q3 was the best quarter for VC deal flow into clean energy companies since Q4 2022, as investors take bigger swings on battery energy storage, grid management and even fusion, according to PitchBook’s Q3 2024 Clean Energy Report. Even Northvolt's descent into bankruptcy doesn’t seem to have put a dent into fundraising for clean energy alternatives.

The AI industry’s demands on data centers are pushing investors into uncharted territory. Ten fusion startups raised VC rounds in Q3, including four rounds over $50 million.

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GP-to-GP dealmaking
hits annual high

(Chloe Ladwig/PitchBook News)

A key component of this year's M&A market has been the pronounced uptick in GP-to-GP transactions. GP deal activity reached 124 majority or minority deals through Q3, a record annual high with three months to go.

In PitchBook's Q3 2024 US Public PE and GP Deal Roundup, our analysts explore this trend, exemplified by Blue Owl, which completed its fourth acquisition of a GP this year, effectively adding $44 billion to its AUM.

On the deployment front, private equity activity accelerated by 37.7% from Q2 across the six largest publicly traded PE managers. In the post-election environment, the momentum is expected to persist with a likely uptick in M&A come December.

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Quote/Unquote

"It's a conversation that is happening in all the C-suites, and it’s happening especially at the private equity firms, who are looking at a hold period."

—Michelle Ritchie, PwC global leader of industrial manufacturing and automotive deals discussing the impact of proposed tariffs by President-elect Donald Trump may have on the private equity ecosystem.

Trivia

Answer: D

OTTP does not have a stake in London Heathrow Airport but does have investments in London City, Bristol, and Birmingham airport alongside stakes in Brussels and Copehenhagen. You can read more about who the key players looking to buy out OTTP's stake here.

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This edition of The Weekend Pitch was written by Michael Bodley, Nadine Manske and Jacob Robbins. It was edited by James Thorne and Clarinda Simpson.

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PitchBook News - Crypto VCs line up for bitcoin boom

Trivia

Stay tuned

Clean energy bets
powered up in Q3

GP-to-GP dealmaking
hits annual high

Quote/Unquote

Trivia

Sign up for our newsletter

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PitchBook News - Crypto VCs line up for bitcoin boom

Trivia

Stay tuned

Clean energy bets powered up in Q3

GP-to-GP dealmaking hits annual high

Quote/Unquote

Trivia

Sign up for our newsletter

Older messages

You Might Also Like

Clean energy bets
powered up in Q3

GP-to-GP dealmaking
hits annual high